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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dalin who wrote (36788)	5/10/2001 8:05:06 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

Agree about don't fight the FED Rambler dude. However, tomorrow's PPI might put a hitch in the expectation of a 50 point cut in rates. Near term that could be bad for the NAZ. Gas prices have been heating up for weeks & this might start to spill over onto other costs that affect PPI. In my area, gas was up more than 15% last month. All kinds of meat, especially beef has been going up considerably. I am seeing more price increases on lots of stuff. Per the YAHOO Briefing - Economic Calendar for May 11 ............ Core PPI for April Market Expects + 0.1% Briefing Forecast + 0.1% PPI for April Market Expects + 0.3% Briefing Forecast + 0.2% biz.yahoo.com Not much room for error me thinks. At worst, the market expects a PPI inflationary rate of .3%, or 3.6% annualized. My point is that even if PPI is only .1% above "expectations", it could be the excuse to sell into the FED meeting. OTOH, if the market runs into the FED meeting next Tues & even get a 50 point cut, is it priced in? Where's the visibility for earnings growth? Most major companies have reported & visibility is still iffy. The NAZ is 30%+ off its bottom with little retracement of those gains. There are many open gaps. Me thinks the bottom is in, but that doesn't rule out a pull back near term. I'm just not convinced that the market continues up & up & up. Perhaps I'm wrong. Perhaps not. JMHO GO Pens! Ö¿Ö